Magnuson Hotels shatters online reservation fees, increases affiliate revenue with no-cost STAR Club
Magnuson Hotels, the world’s largest independent hotel group, announced today a significant reduction in online reservation fees paid by its 1000 hotel affiliates with the successful global distribution launch of STAR Club.
STAR Club is the latest Magnuson Direct initiative to drive global distribution direct to hotel owners, bypassing the fees, charges and conditions of third party online channels and travel agencies. Year to date, direct reservations booked through Magnuson’s worldwide system have doubled to nearly one-third of its total distribution.
While traditional franchise chains offer guest incentive programs designed to encourage brand loyalty, the cost of managing these programs is financed by frequent traveler assessments to hotel franchisees; fees usually range from 2 to 6% of reservation revenue. For a 100 room midscale hotel at 65% occupancy, the cost for a franchised hotel to maintain its frequent guest program could add up to over $100,000 per year. Magnuson’s STAR Club has no cost to hotel owners affiliating with Magnuson Hotels.
“STAR Club gives people what they want,” stated Thomas R. Magnuson, Magnuson Hotels CEO. “During times of job losses and economic crisis, travelers are not looking for free prizes. Travelers are looking for a clear promise of value--the lowest rate everywhere everyday with no gimmicks. Magnuson Hotels is committed to using every power possible to help owners make it through the crash by increasing revenue and decreasing costs.”
About Magnuson Hotels, the fastest growing hotel chain in history.In only six years, Magnuson Hotels headquartered in Spokane, WA, has become the world’s largest independent hotel group, as well as the fastest growing hotel chain in history. With a current affiliate base representing aggregate assets in excess of $4.5 billion, Magnuson Hotels has recently added more affiliate hotels with its low-cost franchise alternative than 8 out of the top 10 branded hotel chains combined including Best Western, Days Inn, Super 8 and Ramada.
Magnuson Hotels was recently ranked number 914 on Inc. Magazine’s 2008 annual ranking of the 5,000 fastest-growing privately owned US companies. With a three year sales growth of 395%, Magnuson Hotels also ranked number 92 in the top 100 US business services companies. Magnuson Hotels joins past honorees including Microsoft, Oracle, Timberland, Morningstar, Jamba Juice, and Domino’s Pizza.
In addition to providing low-cost access to the world’s largest reservation system, Magnuson Hotels offers complete brand representation in all major US and Canadian markets and market segments without the costs & requirements of franchise brand affiliation.
Phone: (509) 747-8713
About Magnuson Worldwide:
Since its launch fourteen years ago, Magnuson Worldwide has become America's fastest growing hotel brand and a top 15 global chain, marketing over 1,000 hotels across six countries and three continents. Magnuson Worlwide's newly formed distribution partnership with Chinese operator Jin Jiang Hotels and Europe's Louvre Hotels is the world's largest hotel alliance, forming a consortium of over 8,000 hotels and 800,000 rooms worldwide, equal to the size of a top 2 global hotel chain.